NEW ISSUE: $425 MILLION ISIS PHARMACEUTICALS (ISIS) 1% CONVERTIBLE SENIOR NOTES OF 11/15/2021

With ISIS' new deal pricing at the cheap end of the price talk--the right thing to do given that the stock was temporarily a bit overextended from hedgers repurchasing shares--the bond was ultimately priced to yield a Hillside Overall Convertible Score (HOCS) array of 68 Overall/78 Growth/49 Safety, slightly better than the preliminary slash line we provided yesterday. After an unsurprising selloff this morning, the stock has returned to the level of last night's close, and the bonds are back to par.  Since buyers had opportunities to add to positions below par this morning, the bonds may contract a bit here, but we think the final pricing, as the HOCS final slash line shows, was fairly attractive.